Apple is back in news and currently trending among all other technology related news on the Internet. And this time, the rumors are pointing toward not one, but two new iPhone models that Apple might release later this year.
Currently, rumors are pretty rife that the Cupertino-based company could release two major and larger iPhone 6 models in 2014. However, an industry analyst said on Monday that only one of the two heavily rumored larger iPhones could be introduced in the market in the second half of this year.
Steve Milunovich of USB wrote in a note to investors that the next-generation iPhone, popularly dubbed as the iPhone 6, is likely to be released in August or September, contrary to the popular belief that it will arrive in June, as reported by Barron's.
"The stock may act better this summer in anticipation of new products. We expect a dividend hike and share repurchase guidance on the April earnings call. Our iPhone model is up just 10mn this year at 172mn vs 162mn last year. China Mobile, which appears to be off to a slow start at about 1mn iPhones in Feb, could be sufficient to account for the entire change," the report states.
"The second calendar half may surprise to the upside if either China Mobile or the iPhone 6 gain traction. Although the iPhone 6 could carry a lower margin since we would be surprised if it is priced at much of a premium, unit demand could be strong as surveys suggest Apple users want larger screen sizes."
Furthermore, while two different iPhone 6 models have been predicted to arrive - one with a 4.7-inch screen and the other with a 5.5-inch screen, it seems like only the smaller of the two could arrive this year.
The larger model, on the other hand, "may or may not launch at the same time and could be of the same resolution (lower pip), which would help app developers," Milunovich stated, citing his "checks" of the supply chain.
Apart from that, Milunovich also said that the larger-screen iPhone 6 model could be priced higher than the current version of the flagship smartphone.
UBS's Steve Milunovich is already known for giving a 'Buy' rating on Apple shares with a $650 price target.